Power management company Eaton (NYSE: ETN), Dublin, Ireland, on Monday announced it has agreed to acquire UK-based manufacturer Cobham Mission Systems (CMS) for $2.8 billion.
CMS manufactures air-to-air refueling systems, environmental systems and actuation primarily for defense markets. Eaton said that excluding the amount paid for tax benefits, the purchase price represents about 14 times CMS’s 2020 EBITDA and 13 times its estimated 2021 EBITDA.
“Cobham Mission Systems’ highly complementary products and strong position on growing defense platforms will enhance our fuel systems business and position our Aerospace business for future growth,” said Heath Monesmith, president and chief operating officer, Industrial Sector, Eaton. “We look forward to welcoming CMS to Eaton.”
The acquisition, which is subject to customary closing conditions, is expected to close in the second half of 2021.